Search found 1071 matches

by EHEngineer
Fri Mar 08, 2024 11:24 am
Forum: Personal Finance (Not Investing)
Topic: SSA possible reporting error?
Replies: 32
Views: 2693

Re: SSA possible reporting error?

Please note: Employers are required by law to send Form W-2, Wage and Tax Statement, for every employee to the Social Security Administration. Paper and electronic submissions are due by January 31st. Since 1987, if you submit more than 250 Forms W-2, you are mandated to file them via electronic filing I have a few questions: Do you work for a large employer with greater than 250 employees? If so, is payroll processed by a major payroll processing company, such as ADP or Paychex? Or is this a smaller company, and/or a company with an in house payroll system? It’s possible that there could be a reporting error to the SSA, where the Federal wages are duplicated, with the resulting sum of the SSA wages above the maximum, and the system cuttin...
by EHEngineer
Tue Mar 05, 2024 11:50 pm
Forum: Personal Consumer Issues
Topic: Vanguard and Yubikeys
Replies: 9
Views: 967

Re: Vanguard and Yubikeys

You have to add a second yubikey before you can remove SMS backup. It will also require you to set up security questions as a backup method. Use very long random strings for your security questions. Save them carefully. As long as you never use them, that is fine. If you login with the phone app and use the "security" questions as a secondary password authentication, then the authentication is susceptible to replay attacks if one of the answers is compromised. When you use the app on your phone you must answer a security question the first time login only. It's a minimal risk, IMO. If you don't trust the security of your phone and are worried about entering username, password, and security question into it but still want to do in...
by EHEngineer
Tue Mar 05, 2024 10:37 pm
Forum: Personal Consumer Issues
Topic: Vanguard and Yubikeys
Replies: 9
Views: 967

Re: Vanguard and Yubikeys

You have to add a second yubikey before you can remove SMS backup. It will also require you to set up security questions as a backup method. Use very long random strings for your security questions. Save them carefully.
by EHEngineer
Fri Feb 23, 2024 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: resources for getting kids interested in investing / personal finance
Replies: 11
Views: 1065

Re: resources for getting kids interested in investing / personal finance

give him a weekly allowance so he can start to spend money and understand how it works. For us, an allowance is not earned, it is a benefit of being part of our family. $10 per week is a reasonable start for a 10 yo. We created a kid's "savings account" where we pay them an "interest rate" large enough to make them look forward to the monthly interest. For us, that account was a gallon sized ziplock bag and a handwritten deposit/withdrawal log. We paid interest of 10% per month at the beginning and tapered that down over time. If you're into charity, include them in your thought process deciding who to give to. Give them a "gift" where they get to choose the recipient for a donation. Also, find charitable activ...
by EHEngineer
Fri Feb 23, 2024 2:50 pm
Forum: Personal Investments
Topic: Annuity Headache
Replies: 4
Views: 936

Re: Annuity Headache

Friend should look at http://www.blueprintincome.com. It's an online comparison site showing MYGAs from many companies. They have 5 yr MYGAs paying 5.5% or more. It's easy to see which MYGAs allow withdrawals and easy to see the financial rating of the issuing insurers. Blueprint calls MYGAs "fixed annuities."
by EHEngineer
Wed Feb 21, 2024 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: Security Hack of my bank credit card and loss of identity info
Replies: 35
Views: 4477

Re: Security Hack of my bank credit card and loss of identity info

carolinaman wrote: Sun Feb 18, 2024 12:47 pm
HereToLearn wrote: Sun Feb 18, 2024 9:51 am To the OP,

Perhaps this recent story will make you realize that you are not alone in falling prey to these scams.

https://www.thecut.com/article/amazon-s ... rants.html
That was an amazing story. I cannot see how a free lance finance writer for the NYTimes would fall for that. But then, I have my own foolish, sad story.
Sorry this happened to you. I hope you don's continue to self-admonish. These people are professionals. They develop techniques and expertise for manipulation. You're human like the rest of us. It's no surprise!
by EHEngineer
Wed Feb 14, 2024 9:32 pm
Forum: Personal Investments
Topic: Please review portfolio and questions-Thanks!
Replies: 6
Views: 1063

Re: Please review portfolio and questions-Thanks!

Questions: 1. As you can see from our fund selections, we have been pretty aggressive investors, having a high tolerance for risk and don’t freak out on dips. At our current ages of me 57 and spouse 49 when do we start to dial back the aggressiveness? If so, how would you recommend doing this? I am recently semi-retired but still doing some consulting, spouse is a high-income earner and will probably have another 15 years working. This is a personal decision. There is no right answer, just a right answer for you. Remember, whatever you choose, write it down and keep that for yourself (that's the start of your "investing policy statement"). https://www.bogleheads.org/wiki/Investment_policy_statement My 2c is that if you're spendin...
by EHEngineer
Wed Feb 14, 2024 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: How does a married couple try to lower potential taxes in retirement?
Replies: 20
Views: 2054

Re: How does a married couple try to lower potential taxes in retirement?

In my last thread, https://www.bogleheads.org/forum/viewtopic.php?t=423936 , I asked about whether to Roth or not. I came to find out that there are limits in how much you can contribute to a Roth - $8,000 each person/$16,000 per couple; I was thinking that I could put quite a bit more, somewhere about $30,000 total for us. We can spend down some of our savings by not taking any SS until 70 or have my wife take hers and spend down the difference. We are talking about $83,000 or $62,000 per year withdrawing to live on and also take the extra money and put it into our Roths and our investment account. My concern, which I never thought about until very recently is the taxes we may have to pay when RMDs start getting relatively high withdrawal...
by EHEngineer
Wed Feb 14, 2024 1:33 pm
Forum: Personal Finance (Not Investing)
Topic: Talking with my Dad about Finances
Replies: 16
Views: 2067

Re: Talking with my Dad about Finances

My parents are in their mid 70's and my dad has always taken care of of their financials since they got married 50 years ago. He had a health scare (minor stroke) a few years ago and has recovered fully but it was a wake up call to me and I'd like to talk to him about what would happen if he were to pass away or be incapacitated. She will probably not be able to manage things herself and I want to be able to help her. He has resisted talking with my mom about it, so I feel its the responsible thing for me to find out if there is a plan and if not to help put one in place. However, we are a good midwestern family and talking about big stuff like that is not our forte. Does anyone have some good advice on how to bring this up? My thought was...
by EHEngineer
Wed Feb 14, 2024 11:43 am
Forum: Personal Finance (Not Investing)
Topic: SSA business address error, can't file wage reports
Replies: 1
Views: 201

SSA business address error, can't file wage reports

My business is trying to set up online wage reporting with the SSA. Their security process requires them to physical-mail me a PIN code. The address SSA has is incomplete and the PIN letter has failed to deliver. SSA *ONLY* gets the business address from the IRS. IRS has the correct/complete address. IRS address / correct address Business Name 123 Main Street STE 201-212 Anytown, Anystate Zipcode SSA address / incomplete address Business Name 123 Main Street STE 201 Anytown, Anystate Zipcode This address is an office park that has one street number, multiple buildings, and multiple offices within each building. I have building 201 office 212, so i need both numbers to receive mail. I do regularly receive mail. Does anyone know how to get th...
by EHEngineer
Sat Feb 10, 2024 1:58 pm
Forum: Personal Investments
Topic: How to invest cash at Schwab?
Replies: 76
Views: 9292

Re: How to invest cash at Schwab?

To add clarity to my situation- I felt I was getting too much in of my AA into stocks and with the bond market doing poorly and a mini wind fall of money that came my way I was tryig to find a place to park cash, my bank pays almost nothing, so with Vanguard I just started parking this cash in the settlement fund which was getting around 5%, which seemed to be better than bonds. So after selling some under performers at Schwab, this dumped a sizable amount in my cash holding. I had assumed this account would mirror what VG does, I got a lot of good info so far and I am very thankful. I am always open to suggestions on were to park money that will have lower risk, with some return. emphasis added. Schwab earns a substantial portion of their...
by EHEngineer
Sat Feb 10, 2024 1:55 pm
Forum: Personal Finance (Not Investing)
Topic: Need some assurance for my resignation countdown
Replies: 53
Views: 4780

Re: Need some assurance for my resignation countdown

I have never taken unemployment benefit. But I feel at this point my happiness is worth more than the unemployment benefit. I would rather resign than endure the humilation of being laid off. To be honest, even though I am still valuable to the company, I feel my skillset is becoming obsolete and I don't have the motivation to learn the latest technology. I would rather spend time doing something else, such as gardening. Part of the difficulty to discuss this with friends is that they don't know your financial situation. So they always give your suggestion based on their own situation. I am so glad many BH here could relate to my circumstance and offer your valuable advice. Have you considered telling "upper management" that a) y...
by EHEngineer
Mon Feb 05, 2024 7:13 pm
Forum: Personal Investments
Topic: How to invest cash at Schwab?
Replies: 76
Views: 9292

Re: How to invest cash at Schwab?

To add clarity to my situation- I felt I was getting too much in of my AA into stocks and with the bond market doing poorly and a mini wind fall of money that came my way I was tryig to find a place to park cash, my bank pays almost nothing, so with Vanguard I just started parking this cash in the settlement fund which was getting around 5%, which seemed to be better than bonds. So after selling some under performers at Schwab, this dumped a sizable amount in my cash holding. I had assumed this account would mirror what VG does, I got a lot of good info so far and I am very thankful. I am always open to suggestions on were to park money that will have lower risk, with some return. emphasis added. Schwab earns a substantial portion of their...
by EHEngineer
Sat Feb 03, 2024 10:52 pm
Forum: Personal Finance (Not Investing)
Topic: DW Laid Off, I'm Panicking
Replies: 166
Views: 20733

Re: DW Laid Off, I'm Panicking

DW was recently laid off and I’m stressed about making sure I stay employed so there’s income coming in and also for the family to have health insurance coverage. Also worried that our hopes of retiring in the next 3-5 years are now dashed. Me: 53 yo, DW 51 yo Kids: 16 yo, 13 yo We still live in a VHCOL area in East Coast My Gross Income: $260K + 25% bonus Monthly expenses are ~$14,000-16,000 per month pre-tax (~$5K for mortgage and property tax) Investments: Cash/MM/CD - $1.3M @ ~5% interest rate Stocks - $4.0M (includes ~$1.3M in 401K/ROTH/IRA and about $250K in 529) Bond - $200K Mortgage Debt of $550K (equity of ~$900K) @ 3% We’ve been average cost investing the cash into the market, which is what helps us sleep at night rather than a l...
by EHEngineer
Sat Feb 03, 2024 10:09 pm
Forum: Personal Investments
Topic: Starting a Solo 401k
Replies: 4
Views: 492

Re: Starting a Solo 401k

I may be cutting the corporate shackles soon and going out on my own as a single-member LLC. One of the things I’m thinking about is how to get a solo 401k going for myself. I’d appreciate if folks would provide guidance on this, specifically: Where are the best places to set one up? I plan to invest in ETFs like VTI, VXUS, and BND. I currently have my brokerage accounts at Fidelity - do they offer a good solo 401k option? By “good” I mean low or no costs to set up and maintain. If my account balance is < 500K, do I have any annual filing needs or other admin tasks? Do I need to hire a third-party administrator? Can I contribute the full 69K each year? Does the annual contribution limit depend on how I form the business? For example, does ...
by EHEngineer
Sat Feb 03, 2024 8:07 pm
Forum: Personal Investments
Topic: Rollover IRA vs. pro-rata rule for backdoor Roth IRA
Replies: 12
Views: 1159

Re: Rollover IRA vs. pro-rata rule for backdoor Roth IRA

Jary316 wrote: Fri Feb 02, 2024 11:48 pm Happy to disclose those info. The 401K is at $113k. The ER is 0.034%. No management fees or any other fees. Looking into the transaction history for 2023, I see 4 fees of $1.25 taken from the account (which is less than the $35 I would expect). The fund is using an Institutional version of 2 of the index funds, which seem to have extremely low ER (VSMPX is one such fund).
Those are microscopic fees.
The cost of electricity to power your computer while initiating a rollover would cost you more than you'd save in a rollover IRA.
Seriously, save your time and forget rolling over this account.
by EHEngineer
Fri Feb 02, 2024 6:39 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Tax error
Replies: 6
Views: 1122

Re: 2022 Tax error

I would also expect this would be resolved by now. This is an error the IRS should catch and handle quickly. Unless you filed using paper. Before doing an amended return, I think you should go to the IRS website and look at your records there. I have never done this so I can't tell you how to do it. But it can be done. It's on the website if you have an account. Or, you can call the IRS and request your transcript on their automated phone line. https://www.irs.gov/individuals/get-transcript You can also request a transcript by mail by calling our automated phone transcript service at 800-908-9946. Note that there are two transcripts. A tax transcript and an account transcript. The tax transcript is your tax return as you submitted AND as t...
by EHEngineer
Fri Feb 02, 2024 6:23 pm
Forum: Investing - Theory, News & General
Topic: Dumb money is the smart money
Replies: 17
Views: 4569

Re: Dumb money is the smart money

From Larry Swedroe on The Evidence Based Investor: "While active investors like to think of themselves as sophisticated investors, the evidence we reviewed demonstrates that they are naive performance chasers. In contrast, in aggregate it is the passive investors who are the “smart money,” refusing to play the loser’s game that is active management." Mic drop? https://www.evidenceinvestor.com/active-or-passive-investors-which-is-the-smart-money/ Yep, that mic has been dropped dozens or hundreds of times. See SPIVA, or vanguard's research, or the many academic studies like the one linked here. Substituting "passive" for "index" is a little bit sleight of hand. He uses passive because he considers DFA's "pa...
by EHEngineer
Fri Feb 02, 2024 5:21 pm
Forum: Personal Finance (Not Investing)
Topic: Recently let go from work while pursuing MBA - need advice.
Replies: 26
Views: 3854

Re: Recently let go from work while pursuing MBA - need advice.

sailaway wrote: Fri Feb 02, 2024 4:56 pm Is this the online program?

Either way, I would at least stick out this semester and only then make a decision.

For one thing, if you do go awhile without picking up a job, focusing on the MBA is a pretty good explanation for the gap.
That's what I was thinking.

Before:
Main gig: Employed with income.
Side gig: MBA student

After:
Main gig: MBA student
Side gig: Searching for new job.

MBA programs are a networking goldrush. Work it. Put your thing down, flip it, and reverse it.
(I couldn't resist)
by EHEngineer
Fri Feb 02, 2024 5:04 pm
Forum: Personal Investments
Topic: Rollover IRA vs. pro-rata rule for backdoor Roth IRA
Replies: 12
Views: 1159

Re: Rollover IRA vs. pro-rata rule for backdoor Roth IRA

If this is your current employer it is unusual for them to allow a rollover into an IRA while you're still employed. If this is a former employer, roll it into your current employer's 401K, and keep doing the backdoor roth. which is it? My specific situation is that I am currently unemployed with a 401(k) from my former employer. My spouse is employed and with her salary plus our other income (interest, passive income from real estate), we will be excluded from direct Roth contributions. My understanding is we can and should both do a backdoor Roth IRA. I was hesitant/researching whether I should rollover my former 401(k) into a traditional IRA (or individual 401(k), which. I do not yet have), but realized I would get affected by the pro-r...
by EHEngineer
Thu Feb 01, 2024 4:23 pm
Forum: Personal Investments
Topic: Rollover IRA vs. pro-rata rule for backdoor Roth IRA
Replies: 12
Views: 1159

Re: Rollover IRA vs. pro-rata rule for backdoor Roth IRA

If this is your current employer it is unusual for them to allow a rollover into an IRA while you're still employed.

If this is a former employer, roll it into your current employer's 401K, and keep doing the backdoor roth.

which is it?
by EHEngineer
Mon Jan 29, 2024 11:33 am
Forum: Personal Consumer Issues
Topic: Thinking of moving to Denver
Replies: 59
Views: 6674

Re: Thinking of moving to Denver

Given that I'm working from 100% of the time and bored of the Seattle area, thinking of moving to a different state. Denver is one of the cities I was considering moving to. Just doing some research, saw several posts complain about the air quality. How bad is it really. What are the best school districts with STEM AP courses? Given that I don't intend to work for an employer in Denver, I don't need to live near Google Campus. I did see other posts online around the same topic so perhaps the latter question is a repeat, but just have a stem focus, and would prefer more diverse neighborhoods - the few schools I saw had 77%% Asian population. doh! TBH - there isn't much diversity in our current school either - it's around 77% Asian - looking...
by EHEngineer
Fri Jan 26, 2024 12:05 pm
Forum: Personal Finance (Not Investing)
Topic: Selling house after 33 year; realtor distrust
Replies: 86
Views: 9849

Re: Selling house after 33 year; realtor distrust

Commissions should be more like an option with a strike price. At some low-ish price the house will sell itself without paying a commission. So, construct an option such that If the house closes at your expected value, then they earn about 3%. If the deal closes higher then they share a much larger percentange of the excess. For you, expected value is about $5M. I propose an option such that agents share a 50% commission on the purchase price minus $4.4M. (split equally between buying and selling agents) Offers at $4.4M or below result in zero commission. Offers at $5.0M result in $300k commission (6% total, 3% each) Offers at $6.0M result in $800k commission, (13.3% total, 6.67% each) This will align the agents' incentives with your own. A...
by EHEngineer
Thu Jan 18, 2024 11:00 pm
Forum: Personal Finance (Not Investing)
Topic: 2022 Tax error
Replies: 6
Views: 1122

Re: 2022 Tax error

Retirednurse wrote: Thu Jan 18, 2024 10:53 pm Question.
I just learn how to do turbo tax.
I open the free account in turbo tax and practice how to enter the information From 2022.
I found out that my tax man made a mistake in enter the amount of tAX withhold in one of the w2, $1895 instead of $2895.
…so the total amount of my paid tax is less $1000. I did not catch it until now.
Is there anything we can do. Is it too late. Just wonder if the IRS software will catch it that I paid more than it should be.??
I will not use the same tax man again so I don’t think he will do any fixing.

Thank you.
It is not too late. You can file an amended return, form 1040-X.

When did you file your 2022 taxes? I expect the IRS should catch this and send you the appropriate refund.
by EHEngineer
Thu Jan 18, 2024 10:33 pm
Forum: Personal Finance (Not Investing)
Topic: Blank W2 forms? (to fill and submit)
Replies: 9
Views: 824

Re: Blank W2 forms? (to fill and submit)

https://www.irs.gov/pub/irs-prior/fw2--2023.pdf
Page 1 paragraph 2 says:
The official printed version of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file Copy A downloaded from this website with the SSA; a penalty may be imposed for filing forms that can’t be scanned.
by EHEngineer
Thu Jan 18, 2024 10:29 pm
Forum: Personal Finance (Not Investing)
Topic: Blank W2 forms? (to fill and submit)
Replies: 9
Views: 824

Re: Blank W2 forms? (to fill and submit)

Golfer-- wrote: Thu Jan 18, 2024 12:06 pm Forms can be purchased at Office Depot.
Excellent. Problem solved. Thank you.
by EHEngineer
Thu Jan 18, 2024 12:13 pm
Forum: Personal Investments
Topic: Help Setting up 401K plan
Replies: 14
Views: 915

Re: Help Setting up 401K plan

Thank you all for the replies! We currently do not have much, if at all in retirement planning accounts- My husband has yet to do a 401K ever and I have maybe 30K (tax deferred) from a previous job. He is a physician (1 1/2 years out of training and lots of school debt). We spent the past year building an emergency fund and down payment for a home (hopefully we will buy this year). Our marginal tax rate is 32%. I do not know which amount I will be eligible for social security wise but I did put into it when I was working for 16 years. My husband is currently putting in the max amount. We really are starting from 0 when it comes to planning for the future. I appreciate your advice! You have a good instinct to do half Roth and half pre-tax. ...
by EHEngineer
Thu Jan 18, 2024 11:47 am
Forum: Personal Finance (Not Investing)
Topic: Blank W2 forms? (to fill and submit)
Replies: 9
Views: 824

Blank W2 forms? (to fill and submit)

In december my very small business hired my spouse as its 1st employee, and paid wages. I need to create a W2, submit the W2 to SSA by Jan 31, and provide W2 to spouse/employee by Jan 31. Printing of the W2 PDF form online is not allowed. Creating forms online through the BSO requires a login that I don't have, and haven't been able to get despite a week of working on it. I have spend many many hours on hold and talking with agents who can't get it done but always have another phone number to call and wait in line again. Forms ordered from the IRS take 15 business days to deliver (delivery Feb 8th, 2024). They cannot expedite shipping even if I paid for it. I have called to schedule an appointment with the local IRS office, but the appointm...
by EHEngineer
Sat Dec 23, 2023 11:57 pm
Forum: Personal Finance (Not Investing)
Topic: IRS 2024 IP PIN and ID.Me
Replies: 29
Views: 6512

Re: IRS 2024 IP PIN and ID.Me

What happens if I never make an ID.met account? Will the IRS discontinue my IP PIN assignment/usage?
by EHEngineer
Mon Dec 11, 2023 3:17 pm
Forum: Personal Consumer Issues
Topic: Vanguard “We’re experiencing technical difficulties”
Replies: 51
Views: 7486

Re: Vanguard “We’re experiencing technical difficulties”

Vivbet wrote: Mon Dec 11, 2023 2:56 pm “…We apologize for the temporary inconvenience…”

Hello everyone, is anyone else getting this error message when attempting to login to their Vanguard account, or am I just lucky?
I get this message on my browser that has been "locked down." I have another browser with fewer restrictions and can log in just fine. The message appears after clicking the "log in" button on this webpage, before it shows the fields to enter my credentials.
https://investor.vanguard.com/home
It's probably caused by blocking all 3rd party cookies, but I haven't tested it.
by EHEngineer
Tue Oct 24, 2023 10:07 am
Forum: Personal Finance (Not Investing)
Topic: Excess 401(k) deferrals to get the match?
Replies: 3
Views: 653

Re: Excess 401(k) deferrals to get the match?

lakpr wrote: Mon Oct 23, 2023 5:30 pm Just a mild criticism of your examples. You are assuming that the contribution marginal tax rate and distribution marginal tax rate are identical. A person could be contributing at 35% marginal tax rate but withdraw only enough to pay for living expenses which would be likely 22%. Or perhaps 25% when tax rates rise, as scheduled by law, in 2026 and beyond.
Thank you. Yes, I did that on purpose, but I forgot to put that in assumptions. It's in there now.
by EHEngineer
Mon Oct 23, 2023 3:30 pm
Forum: Personal Finance (Not Investing)
Topic: Excess 401(k) deferrals to get the match?
Replies: 3
Views: 653

Excess 401(k) deferrals to get the match?

I contributed to two 401(k) plans this year, and accidentally excess deferred about $30. I read others' posts to figure out what to do (answer: do nothing), and I learned that the penalty for over contributing is double taxation on the excess contribution. Next, I wondered if it may be worth double taxation in order to get a 401(k) match. So, I calculated the breakeven tax rate that would offset a given 401(k) match rate. I haven't seen this calculation anywhere else, so thought I would share in case others have the option to contribute to multiple 401ks, and also to ask if the forum sees any problems with my analysis. Am I missing anything? Assumptions: Marginal tax rate includes all types of taxes. Federal income, state & local income...
by EHEngineer
Wed Jun 07, 2023 2:03 pm
Forum: Personal Consumer Issues
Topic: How to find out if your airplane carry-on are allowed
Replies: 51
Views: 3892

Re: Transporting a UPS on an airplane

gavinsiu wrote: Mon Jun 05, 2023 11:35 am It's an old UPS that I am replacing at my mom's house. The battery used to last about 2 hours but now dies at around 10 minutes. My plan was to take it home and hook my ethernet hub to it. For some reason, there are a lot of brownouts in my area so I should be able to use it to solve that issue. Note that the router has its own UPS and the computer is a laptop. However, the hub goes out briefly if there is a brown out.

I tried not to dispose of equipment unless there is no longer any use.
Instead of replacing, daisy chain your mom's UPS's. Plug new one into old one, old one plugged into wall. Get 2 hrs 10 minutes UPS time.
by EHEngineer
Tue May 23, 2023 10:32 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - Mega backdoor or not
Replies: 33
Views: 1588

Re: Solo 401k - Mega backdoor or not

MP123 wrote: Tue May 23, 2023 10:21 am An S-Corp (or LLC with S-Corp election) shouldn't be filing a Sch C, and the solo 401k contribution limits are based on the W2 salary from the S-Corp, not business profit. This is because an S-Corp owner is not technically "self-employed", instead they are an employee of the S-Corp. The "Self-employed Individuals" section of Pub 560 does not apply to the S-Corp owner/employee, but rather to sole proprietors or LLCs without an S-Corp or Partnership election (i.e. disregarded entities).

An S-Corp owner's contribution limits are like any other W2 employee's limits, but few other employers are generous enough to make a 25% of compensation contribution.
Thanks. I always learn something in the mega back door threads.
by EHEngineer
Tue May 23, 2023 9:54 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - Mega backdoor or not
Replies: 33
Views: 1588

Re: Solo 401k - Mega backdoor or not

Process - I calculate what i want to do for employee pre tax, employer (always pre tax), and employee after tax non-Roth contribution for self/DW Can you share how you calculate this? Or, how you calculate the maximum allowed for each type/person? - I make sure contributions by writing checks to each account at Fidelity and track it (excel, nothing fancy). Checks are dropped off at local Fido branch that deposit them for me. - Once money is cleared, I execute the form One-Time Withdrawal Investment Only Retirement Account from Fidelity to move funds from accounts I track as after tax non Roth (aka 'mega backdoor') straight into Roth IRAs. Similarly, stop by branch, pick up coffee/chocolate candy (if that is your thing), drop off the forms....
by EHEngineer
Tue May 23, 2023 9:26 am
Forum: Personal Finance (Not Investing)
Topic: Solo 401k - Mega backdoor or not
Replies: 33
Views: 1588

Re: Solo 401k - Mega backdoor or not

Regarding mega backdoor Roth: Your numbers seem odd to me but maybe I'm missing something about S Corps. You can elect to defer $22,500 per person as EmployEE and a further 25% percent of compensation up to $43,500 as the employER. We pay ourselves $90k salary pp from the S Corp so 25% is $22,500 and we can pay $22,500 pp as the employer. I based this on the rules from the IRS: Contribution limits in a one-participant 401(k) plan The business owner wears two hats in a 401(k) plan: employee and employer. Contributions can be made to the plan in both capacities. The owner can contribute both: Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit: $22,500 ...
by EHEngineer
Sat May 20, 2023 10:57 pm
Forum: Personal Consumer Issues
Topic: Strategies for Permanently Reducing Speeding on Residential Streets
Replies: 139
Views: 13695

Re: Strategies for Permanently Reducing Speeding on Residential Streets

I will end with this: the only solution I've ever seen that really slows people down is when the street is lined with parked cars. But while we do have some parked cars, there usually are not many. The first two "your speed" calming devices put out was actually a sign on a trailer parked in the street, which effectively acted like a parked car. The current signs, collecting data discreetly, are hanging from poles in the grass. I also observe that wide streets encourage fast driving, even in residential areas. Here are streets that have curb barriers that separate the street parking area of the driving lane. They are installed near the intersections. Drivers going down the road pass these at each intersection and must be careful t...
by EHEngineer
Wed May 17, 2023 10:34 pm
Forum: Personal Consumer Issues
Topic: Fix dime sized windshield damage
Replies: 14
Views: 1039

Re: Fix dime sized windshield damage

cubs1999 wrote: Wed May 17, 2023 10:07 pm I asked my friend from whom I purchased the car and he told me that damage has been there for at least ten years. Still could spread eventually but also could be fine for rest of the life of the vehicle.
search for Chris Fix on youtube. He has lots of DIY car repair videos, including windshield repair. You can fix it for maybe $20.
by EHEngineer
Wed May 17, 2023 10:01 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing to relocate: can we afford this home?
Replies: 108
Views: 12754

Re: Preparing to relocate: can we afford this large home?

$300k income can afford a $450k mortgage. I calculate that to be a $4570 PITI payment. If you save $52,500 in 401ks and HSAs and pay $2,400 for health insurance, you'll have a net monthly income of $14,800 (assuming no state/local taxes). That makes your housing cost ratio 31% which is fine at your income level. I doubt utility costs or maintenance costs would move the needle much.

If one of you loses a job it could leave you house poor.

good luck.
by EHEngineer
Sat May 13, 2023 1:20 pm
Forum: Personal Investments
Topic: Moved Mom's $$ from E Jones to Fidelity - How'd we do?
Replies: 9
Views: 1002

Re: Moved Mom's $$ from E Jones to Fidelity - How'd we do?

It sounds like we could simplify by getting rid of FZROX (Zero Total US Market Index) and replacing with FXAIX (SP500 Index). My first choice would be transferring the funds into a Roth account where you can both eliminate taxes and use the zero fund. The other option for taxable is FSKAX, fidelity US Total Market Index fund with tiny ER of 0.015%. This can be held at other brokerage firms. Would it make sense to exchange the FZILX (Zero INTL Index) for FTIHX (Intl Index) as well? My first choice would be transferring the funds into a Roth account where you can both eliminate taxes and use the zero fund. If that is not an option, use FTIHX in a taxable account. After a quick review of this https://www.bogleheads.org/wiki/Tax-efficient_fund...
by EHEngineer
Sat May 13, 2023 12:19 pm
Forum: Personal Investments
Topic: Moved Mom's $$ from E Jones to Fidelity - How'd we do?
Replies: 9
Views: 1002

Re: Moved Mom's $$ from E Jones to Fidelity - How'd we do?

A few thoughts First, with total value of $75,000, her working income is much more important than her asset allocation. Unless SS covers her expenses she will need to work as long as possible. $75,000 can generate around $250 per month (inflation adjusted). Fidelity zero funds cannot be transferred to other brokerages. So, holding them in a taxable account may leave you with bad options if you want to change brokerages in the future. i.e. sell, pay taxes on gains, then transfer. or don't transfer. Also, there is no reason to hold both S&P 500 and US Total Market funds. Pick one and simplify. edit to add: Does she contribute to a Roth IRA? Does her employer offer a 401k (with or without Roth option)? It would be better for her to contrib...
by EHEngineer
Wed May 10, 2023 10:53 am
Forum: Personal Investments
Topic: Multiple Retirement Accounts Contribution Limits
Replies: 5
Views: 509

Re: Multiple Retirement Accounts Contribution Limits

retiredjg wrote: Wed May 10, 2023 10:13 am I am unsure about the 415c limit of $66k. The 401k and 403b may share that or each may have its own $66k limit. There is an oddity about this limit when 403b's are involved.
I would also like to know more about this.
by EHEngineer
Wed May 10, 2023 10:35 am
Forum: Personal Investments
Topic: Multiple Retirement Accounts Contribution Limits
Replies: 5
Views: 509

Re: Multiple Retirement Accounts Contribution Limits

The IRS site is great for understanding elective deferrals. In addition, there is a section 415c $61,000 limitation that affects your individual 401k profit sharing contribution. Take a look at the article and spreadsheet TFB put together for situations like yours.
https://thefinancebuff.com/solo-401k-fo ... yment.html
https://sheet.zohopublic.com/sheet/publ ... 140934898a

the 415c limitation for 2022 is $61,000. For 2023 it's $66,000.
by EHEngineer
Thu May 04, 2023 8:56 pm
Forum: Personal Consumer Issues
Topic: Costco Michelin - Cross Climate SUV
Replies: 21
Views: 3055

Re: Costco Michelin - Cross Climate SUV

September wrote: Thu May 04, 2023 4:30 pm Costco has the Michelin tire deal from 4/12/23-5/16/2023. Four tires of size 235/60R18/XL Load Index: 107 cost about $967.92. Is this a good price? My rear tires are at 3/32" according to the dealer. Dealer charges me a fortune to change my tires and I will go to Costco to change my tires. Thanks!
I have had the CrossClimate SUV for about three years. It's an excellent all season tire. I would recommend the CrossClimate 2 for you. It's a newer design, has 10k mile longer warranty (10/32 v. 9/32 new tread depth), and they're $7 less per tire.
by EHEngineer
Tue May 02, 2023 4:01 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k deductions in HR Block (part time self employment)
Replies: 4
Views: 824

Re: Solo 401k deductions in HR Block (part time self employment)

Sorry to be delayed in responding, but have been traveling. Not sure how helpful this will be since I use Turbotax, not HRB, but the same general flow works in the tax prep software I use at work When doing the Schedule C I have the income screen, asks about inventory, etc, then I have the long screen with all the varied types of expenses (advertising, prof fees, etc). on this screen there is a pension/retirement plan spot. That's where payments would go that the business made for other employees, and would show on the Schedule C. There are a whole separate set of screens to handle the solo 401K contributions, and it asks for employee deferrals as well as what it calls employer match. that all goes to Schedule 1 Mike Thanks again for the g...
by EHEngineer
Wed Apr 26, 2023 6:12 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k deductions in HR Block (part time self employment)
Replies: 4
Views: 824

Re: Solo 401k deductions in HR Block (part time self employment)

that's sound advice. unfortunately I have tried many times before posting here. with my self employed side gig I have two roles, as employee and as employer. Both of those roles can (and did) make contributions to the solo 401k.

I would post screenshots of the entire interview but I don't know of a photo hosting site after tinypic went defunct.
by EHEngineer
Wed Apr 26, 2023 3:07 pm
Forum: Personal Finance (Not Investing)
Topic: Solo 401k deductions in HR Block (part time self employment)
Replies: 4
Views: 824

Solo 401k deductions in HR Block (part time self employment)

I'm using HR Block tax software. I have a side business (self-employed, no other employees) that earned 4 figures in 2022 (best year yet!) I also have a solo 401k to which employee (me) contributed $600 in elective deferrals, and employer (also me) contributed $1,000 profit sharing. I believe the sum of these two (total $1,600) should show up on Schedule 1 (form 1040) line 16 and nowhere else. HR Block puts $1,000 on schedule 1 (form 1040) line 16, AND it puts $1,000 on schedule C (form 1040) line 19. It appears that I am getting a double deduction for the $1,000 employer profit sharing contribution and no deduction for the $600 employee elective deferral contribution. Is HR Block doing this correctly? PS. I have checked the profit sharing ...
by EHEngineer
Mon Apr 17, 2023 9:24 pm
Forum: Personal Consumer Issues
Topic: Unnecessary Oil Change? Or Not?
Replies: 142
Views: 13085

Re: Unnecessary Oil Change? Or Not?

For $35 you can get your oil tested by Blackstone labs. Machines that have expensive oil changes, and expensive repairs get oil tested. Most consumers avoid test costs and just get an oil change at recommended intervals. But if you want to know, go for it.

https://www.blackstone-labs.com/

A test report looks like this:
https://www.blackstone-labs.com/wp-cont ... mbined.pdf

ps. I agree with the crowd who recommends avoiding Jiffy Lube. In my experience the level of professionalism is lower at JL. And, it would be the same price at my local Subaru dealer.

good luck.
by EHEngineer
Fri Feb 10, 2023 8:43 pm
Forum: Personal Consumer Issues
Topic: Insurance Recommendations
Replies: 28
Views: 2791

Re: Insurance Recommendations

JD Power does insurance satisfaction surveys. Here is the most recent (2022) Auto insurance survey. Scroll to the bottom for Texas.
https://japan.jdpower.com/press-release ... ance_study

Home insurance survey results were released this week.
https://www.businessinsider.com/persona ... anies?op=1